rate. What type of Diploma or Certificate will/did you obtain? The acquisition expands Universal Technical Institute's portfolio of offerings into the higher-growth healthcare arena and creates the opportunity to bring workforce educational solutions to a broader array of students and employers. I also cant see any reason why another firm would buy out UTI. Government initiatives have played a big role in this shift. UTI is making more than $15 million in scholarships and grants available to students in 2022. Forward-looking statements are neither historical facts nor assurances of future performance. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Once completed, the acquisition will add Concorde Career Colleges to Universal Technical Institute, Inc.'s brand family, which currently includes Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. 1.7 million+ Total technician employment expected nationally by 203138 Come take a look at our hands-on labs with state-of-the-industry equipment and technology. Together in the three student segments, applications dropped 9 percent in the quarter, and is down 6 percent year-over-year. Please disable your ad-blocker and refresh. Media ContactAlanna Vitucciavitucci@uti.edu480.710.6843, View original content to download multimedia:https://www.prnewswire.com/news-releases/universal-technical-institute-expands-platform-of-workforce-solutions-offerings-with-completion-of-concorde-career-colleges-inc-acquisition-301692062.html. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). With negative free cash flow to price of $-0.49 per share, it's hard to see how UTI expects to grow in the future. Instead, they are based only on UTI's current beliefs, expectations, and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. UTI is an educational institution and cannot guarantee employment or salary. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. You may opt-out by. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. PTA organized lecture training seminars in markets similar to NTT. 7) Some programs may require longer than one year to complete. "The acquisition of Concorde Career Colleges will be a significant next step in our previously announced growth and diversification strategy," said Universal Technical Institute CEO Jerome Grant. Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. UTI expressly disclaims any obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, changes in expectations, any changes in events, conditions, or circumstances, or otherwise. Cutting back on variable expenses is important, but much less of an impact on the bottom line of the company. The bull case for UTI rests on both the market for auto repair growing and the resulting new jobs being won by UTI graduates. has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. PHOENIX, May 3, 2022 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), a leading provider of transportation and technical training programs, has entered into a definitive agreement to acquire Concorde Career Colleges, Inc.from Liberty Partners LLC. The acquisition adds campuses in Texas and Michigan and eight new . Please. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. Between 2009 and 2011, revenue grew by 23% and NOPAT increased by 80%. Opinions expressed by Forbes Contributors are their own. I understand that my consent is not required to apply, enroll or make any purchase. The numbers dont support this story. This scenario assumes a consistent level of profitability as the company achieved over the past two years, as UTI would continue to earn its current 6% return on invested capital (ROIC). Therefore, you should not rely on any of these forward-looking statements. Concorde Career Collegesoperates 17 campuses across eight states under the brands Concorde Career College and Concorde Career Institute, focused on preparing America's next generation of health care and dental professionals for rewarding careers. New rulesrelated to the Telephone Consumer Protection Act (TCPA) went into effect in October 2013 that have made it more difficult for telemarketers to reach consumers that have not given prior consent to receive calls. The most recent data shows that average enrollment has again decreased in 2014, which exerts further downward pressure on profitability. Concorde ended 2021 with approximately 7,400 students and delivered approximately. Any forward-looking statements made by UTI in this press release are based only on information currently available to UTI and speak only as of the date on which it is made. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. All statements contained in this press release, other than statements of historical fact, are "forward-looking" statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Universal Technical Institute (NYSE:UTI) has been struggling lately, and there's little to suggest this stock is going to recover anytime soon, making it a good candidate to short or get out of altogether. With the rise of free community college offerings and increased scrutiny on for-profit colleges, there is little left UTI can do to combat declining demand for its education. [7], On September 27, 2016, UTI reported that its president and CFO, Eugene Putnam, was removed as part of a financial improvement plan and that Kim McWaters replaced him as president. 41) For Automotive Service Technicians and Mechanics, the U.S. Bureau of Labor Statistics projects an annual average of 73,300 job openings between 2021 and 2031. MIAT College of Technology has joined UTIs family of schools! Once males leave high school, specifically in the 18-24 demographic, it becomes harder to reach them. "I am looking forward to the opportunity to join this organization and become one of the preeminent educational providers in the country. This shows at least some alignment. I generally consider insider ownership to be a good thing. 2) For program outcome information and other disclosures, visit www.uti.edu/disclosures. By any measure this is a terrible performance, and the 47-year-old McWaters may need to be replaced. Founded in 1965 and headquartered in Phoenix, Universal Technical Institute's (NYSE: UTI) mission is to serve our students, partners, and communities by providing quality education and support services for in-demand careers. This data contradicts McWaters explanation for the companys recent underperformance. SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. Concorde Career Colleges has a strong reputation in healthcare education, making this an excellent combination for addressing the nation's skills gap," said Concorde CEO Jami Frazier. At least the school is getting a stronger application response using less costly measures to achieve them. UTI has among the worst in the industry. "Universal Technical Institute's brands have a great reputation with both employers and students in transportation and skilled trades. Important factors that could affect UTI's actual results include, among other things, changes to federal and state educational funding, changes to regulations or agency interpretation of such regulations affecting the for-profit education industry, possible failure or inability to obtain regulatory consents and certifications for new or modified campuses or instruction, potential increased competition, impacts related to the COVID-19 pandemic, changes in demand for the programs UTI offers, increased investment in management and capital resources, the effectiveness of UTI student recruiting, advertising and promotional efforts, changes to interest rates and unemployment, general economic and political conditions, the adoption of new accounting standards, and other risks that are described from time to time in UTI's public filings. Universal Technical Institute will post an updated presentation regarding its growth and diversification strategy on its investor relations website. Universal Technical Institute, Inc. (UTI). Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. UTI has relationships with manufacturers of more than 35 leading brands. A more reasonable scenario of6% NOPAT growth for 10 yearsyields a fair value of just $3.75/share 60% downside. The usual mantra that it'll take time to implement the measures to combat the changing market conditions isn't believable with McWaters, who has seen the share price and value of the company erode exponentially under her 10-year watch. If Tennessees program is a success, the free community college initiative could spread to other states. As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. The problem with this strategy is that demand for UTIs education appears to be highly elastic. One will be comprised of Concorde and its leading healthcare education programs and campuses. Analysts are somewhat down on the company, as they are looking for the company to lose $0.02 in earnings for the next quarter, and to drop from a prior estimate of a profit of $0.25 a share to a profit of $0.21 for the year. One way it is attempting to build up the value of the education it offers students is by customizing programs according to the requirements of prospective employers. So they usually pay more attention to companies that are included in major indices. Every investor in Universal Technical Institute, Inc. ( NYSE:UTI) should be aware of the most powerful shareholder groups. At the time of its initial public offering, UTI carried a debt load of $57.3 million. "This transaction marks a major milestone in executing our strategy as we expand the scope of our skilled education programs to serve students' varied workforce-training needs and drive growth for the company. 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